Pharmaceutical company Mallinckrodt agreed to pay approximately $260 million as part of a settlement announced Monday by the Department of Justice for underpaying Medicaid rebates and violating kickback laws regarding its drug Acthar.
Of the settlement total, $234.7 million will be paid to resolve the Medicaid rebate allegations and approximately $26.3 million will be paid to resolve the kickback allegations. Mallinckrodt, which filed for bankruptcy protection in October 2020, also entered a five-year corporate integrity agreement with the Department of Health and Human Services Office of Inspector General that will require it to establish a risk assessment program among other stipulations.
